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Traditional publishers who provide quality e-books will continue to be successful under the traditional model. While some indy authors (especially those previously published) will be successful at self publishing (and a handful will become very successful), consumers will continue to pay $10+ for books from publishers because trying to find the handful of good books from the giant internet slush pile is to tedious for most readers...and is likely to become even more so in the future.
We've been through this with music. ITunes and other internet distribution models have not led to a golden age of indy music. What the vast, vast majority of consumers want is music from traditional labels. (They may be able to avoid paying for it, of course, but that's a different issue, and not one that helps the indies.)
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